Pontiac Times

The U.S. House of Representatives has introduced legislation aimed at expanding critical materials manufacturing, providing tax credits, and establishing a national supply chain resilience program. This announcement was made in a public statement.

According to Ford Authority, Republican lawmakers, including Senator Marco Rubio and Representative John Moolenaar, have urged the U.S. Department of Defense to designate Contemporary Amperex Technology Co., Limited (CATL) as a restricted entity. They cite the company's possible ties to China's military and potential national security risks. These lawmakers warned that allowing such partnerships could undermine U.S. supply chains and signal to companies that Chinese-linked collaborations are acceptable, prompting calls to exclude CATL from federal incentives altogether. This heightened scrutiny underscores broader bipartisan unease regarding CATL's role in critical infrastructure and supports stricter oversight of its partnerships.

A Reuters report reveals that new federal tax and budget legislation initially proposed barring clean vehicle tax credits for battery projects relying on technology licensed from Chinese firms like CATL. While the final version of the legislation ultimately preserved eligibility for Ford’s Michigan plant, the earlier restriction reflects rising congressional pressure to limit financial support for projects tied to foreign technology providers deemed security risks. The fact that such provisions were seriously considered demonstrates growing legislative resolve to decouple critical battery supply chains from Chinese influence.

Electrek reports that Ford’s licensing agreement with CATL involves leveraging Chinese-developed lithium iron phosphate (LFP) battery technology, originally invented in the U.S but industrialized in China to accelerate U.S.-based battery manufacturing. Though the deal supports millennial cost efficiencies, it also entrenches dependency on foreign-developed technology rather than fostering genuinely homegrown innovation. Relying on CATL’s intellectual property may limit the United States’ ability to build independent battery technology capabilities, undermining long-term strategic autonomy in the electric vehicle sector.